SR-301-001-01
.
· (,..w
C/ED:CNS:BS:mpccc
City council Meeting 6/26/90
JUN 2 6 1990
3 t//....ptJ/ --0/
Santa Monica, California
TO:
Mayor and city council
FROM:
City Staff
SUBJECT:
Recommendation to Approve Operating Agreement with
Santa Monica/Malibu Unified school District and
Appropriate Start-Up Funds for Marine Park Child
Care Center
INTRODUCTION
This report describes the proposed Operating Agreement between
the City and the Santa Monica/Malibu Unified School District
(SMMUSD) for the operation of Marine Park Child Care Center. The
report summarizes major lease terms, discusses the required
start-up and operating subsidy for the Center, and requests that
the City Council authorize the City Manager to negotiate and
execute an operating Agreement with SMMUSD.
BACKGROUND
In October of 1988, the City Council approved the use of a
portion of Marine Park as the site for a 3,000 square foot child
care center for children of City employees as well as
neighborhood residents and other families in the community. The
approval of this site allowed City staff to begin implementation
of the final phase of its comprehensive Employee Child Care
Benefit Program which provides for up to 53 new child care slots
to serve a mix of infants, toddlers and pre-school children.
6-w
- 1 -
JUN 2 6 1990
.
.
In December of 1989, City Council approved the general operating
structure for the Center, the program and curriculum philosophy,
child/staff ratios, classroom sizes, and age groups to be served
(infants to kindergarten). Council further authorized City staff
to negotiate with the SMMUSD as the preferred Center operator
given the District's expertise in early childhood education and
stability as an public educational institution.
Since that time, City staff has worked closely with the Director
of the District's Early Childhood Services and a consultant with
extensive experience in childcare center operations and infant
care. This has resulted in a proposed Operating Agreement and
IS-month budget that includes five months of start-up activities
and ten months of Center operations.
In addition, a marketing program was instituted for City
employees to fully inform them of the availability of this new
child care resource. Brochures were sent to all City employees
and informational meetings have been held at several City
locations. As of June 15, 25 employees had expressed a definite
interest in full-time or part-time care and 13 additional
employees are interested but not committed at this time. In
addition, 30 applications have been received from communlty
members. The overall reaction by employees to the program has
been extremely positive.
- 2 -
.
.
DISCUSSION
Summary of Terms of the Operating Agreement
(1) Lease Term: April 1, 1990 through June 30, 1991.
(2) Center Operator: The Center will be administered and
operated by the Santa Monica/Malibu Unified school District's
Childhood Development Services.
(3) Center Staffing: Primary responsibility for staffing, staff
supervision, and program operations will lie with the Director of
Child Development Services. In addition, key to the successful
operation of the program will be the hiring of a site coordinator
who will be responsible for onsite operation of the center and
daily supervision of the child development staff.
Salaries for teaching staff are based on the District's salary
ranges for teachers and assistant teachers. A recently completed
national study by the Child Care Employee Project, lIThe National
Childcare Staffing study," indicated an average teaching staff
turnover rate of 41% in 1988 as compared to a rate of 15% in
1977. Critical to the success of any center is the training and
commitment of its teachers -- thus the salary schedule for the
Marine Park center and throughout the District's early childhood
development programs, while still low compared to other
educational professionals, addresses this need through adequate
salary levels.
- 3 -
.
.
(4) Center Curriculum: The center's philosophy and curriculum
will reflect a child-centered, developmental program that
provides children with a range of choices based on age and the
uniqueness of each child. As a part of start-up activities,
samples of curricula by age group, as well as daily and weekly
schedules will be developed to ensure that the curriculum is
age-appropriate, culturally sensitive and free of sex-role
stereotypes.
(5) Age Groups and Staff/Child Ratios: As approved earlier by
the Council, the program is designed to serve a mix of age
groups including: 12 infants (under 24 months), 21 toddlers (21
months to 3 1/2 years) and 20 pre-schoolers (3 1/2 years to
kindergarten). Factors used in arriving at this mix included the
current space constraints at the Marine Park facility, the
maximum number of children allowable in each space, the
appropriate class sizes, the need to address the variability 1n
development among children of the same age, and the need to
ensure adequate spaces in the next classroom to each enrolled
child as they get older.
Due to the specialized nature of infant care, the District will
develop an Infant Care Plan during the initial start-up period.
The proposed ratios (teaching staff: children) are as follows:
infants (1:3), toddlers (1:7), and preschoolers (1:10). The
ratios for infants and toddlers are consistent with those
standards established by the State of California for
State-subsidized programs as well as those of the National
Association for the Education of Young Children (NAEYC). The
- 4 -
.
.
preschool ratio approaches these standards and exceeds those
minimal state requirements required for the licensing of
non-state supported programs.
(6) Fee Schedule: The fee schedule for the term of the
agreement (for full-time care) is as follows:
Infants
Toddlers
25-30 months
31-36 months
Pre-Schoolers
$650jmonth
$575
$500
$450
The fees are comparable to other non-profit programs in the Santa
Monica area. Affordability for City employees is addressed
through the city's Dependent Care Assistance Program. For
employees with annual household incomes of $50,000 or less, the
above fees can be reduced from $IOOjmonth up to $200jmonth based
on family income level and age of the child. Affordability for
community residents has been addressed through a Community
Scholarship Program in the amount of $28,800 annually which will
be administered by the District to ensure participation by
lower-income Santa Monica families. As budgeted, this support is
equivalent to support for nine families at a 50% subsidy level
(or more or less depending upon the income level of the
interested families).
(7) Facility: The facility at Marine Park will be provided and
maintained by the City. The District will be responsible for
custodial services and all program operations.
- 5 -
.
.
(8) Operating Schedule: The Center will be open from 7:00 a.m.
to 6:00 p.m., Monday through Friday, except for those days
designated as holidays and two teacher-in-service days. If the
ci ty ini tiates a compressed work week to address AQMD
requirements, the proposed hours should provide adequate
coverage.
(9) Program Start Date: The Center will open on September 11,
1990. Phased enrollment will take place over several months to
ensure the appropriate transition of new children into the
program.
(10) Budget: The total operating budget for the first 10 months
of operations will be $435,586. Additional startup funds in the
amount of $90,964 will be provided by the City for equipment,
furnishing, supplies and start-up staffing. The city subsidy for
the term of the Agreement will be $289,875 ($90,964 for start-up
and $198,911 for program operations.)
(11) Operating Subsidy: On an annualized basis, the proposed
city operating subsidy is approximately $240,000 which allows for
a 10% vacancy factor.
Discussion of Operatinq Subsidy:
In approving the initial concept of the program, the city council
asked for the creation of a program that stressed both quality
and affordability. The quality of serv1ces provided are very
much impacted by the experience and training of staff (and the
salary levels needed to recruit and retain this staff), the ratio
of teachers to children, and classroom size. Affordability
- 6 -
.
.
involves a fee schedule that does not prohibit access by lower
income families. Thus, pressure is put on center administrators
to either keep staffing costs lower or seek subsidies for
operations from sources in addition to fees. Given the Council
direction to address both of these issues, City staff has worked
closely with District staff to prioritize these needs and to
develop a program that provides a quality program for the
children and their parents yet also addresses the critical issue
of affordability.
Included in the initial City Employee Child Care Benefit Program
approved by the Council several years ago was the assumption
that both start-up and operating subsidies would be necessary for
the expansion of the supply of childcare for City employees and
residents. As stated previously, the specific amount of
operating subsidy necessary is highly dependent on such factors
as staff salaries and fringe benefits, staff/child ratios,
classroom sizes and special programs such as infant care and
financial support for low-income families. The amount of
revenues generated to cover these costs is primarily dependent on
parent fees as well as available subsidies. In well-run,
employer-based programs (such as UCLA and Huntington Memorial
Hospital) the subsidy provided (to supplement parent fees)
comprises from 40 to 45% of the operating budget. The proposed
annual city operating subsidy is 45.6%.
An analysis of the required annual operating subsidy indicates
that approximately 53% of the subsidy is attributable to the goal
- 7 -
.
.
of providing quality care (33% to salary and fringe benefit
enhancements and 20% to adequate staff/child ratios), 20% to the
inclusion of infant care, and 27% to address affordability
through reduced fees.
FISCAL/BUDGETARY IMPACT
$200,000 from the City's General Fund was appropriated in the
adopted FY 1989-90 Budget in account number
01-700-274-00000-5509-00000. An additional appropriation of
$89,875 has been included in the proposed FY 1990-91 Budget. No
further appropriation action is needed at this time.
RECOMMENDATIONS
City staff recommends that the city Council authorize the City
Manager to negotiate and execute an Operating Agreement with the
Santa Monica/Malibu Unified School District for the operation of
Marine Park Child Care Center.
Prepared by: Barbara Stinchfield, Community Development Manager
Department of Community and Economic Development
- 8 -
... \
.
.
A J)D 10
I
, .
crol: LCB: dvm
Council Meeting June 17, 1986
Santa Monica, California
,
JUN .1 7 *6
'3 () / -- t?O/-- t/ /
TO: Mayor and city council
FROM: City Staff
SUBJECT: Options for Assistance to Santa Monical
Malibu Unified school District
Introduction
On May 6 , 1986, the Ci ty Council directed sta ff to meet with
School District representatives and explore options for assisting
the School District in their current financial difficulties. The
following information summarizes the results of subsequent
discussions and presents options for Council consideration. The
School Board reviewed and endorsed these staff recommendations at
their June 16 meeting.
Backqround
The City and School District have a long history of cooperation
and joint ventures to serve the youth of Santa Monica. These
cooperative efforts include sharing of parks and recreational
facilities and programs; counseling and outreach staff; library
enrichment programs; youth employment services; fire prevention
and police safety presentations; and cable casting of school
information. In the current year, City support exceeds $300,000
for these services.
- 1 -
JUtl 11-
iii- .. ~ Ii
. .
However, while valuable, this support does not alleviate the
.- '>
projected deficit of the School District in support of basic
educational programs.
Declining enrollment and reduced state
funding have not been offset by proceeds from Proposition LL, the
lottery and the disposition of various school properties now
underway. In 1986 - 87, the projected deficit of the district is
estimated to exceed $400,000. There are no reserves available in
the district to reduce this deficit.
Options
The range of areas considered for assistance in this study
include:
Data Processing assistance
Purchase of custodial supplies
cable programming
Library services
Artists in the schools
Rental of various school buildings and grounds
Lincoln pool upkeep
Grounds and fields maintenance
Rebate of utility charges
Abatement of charges for November, 1986 election costs
Funding extra curricular activities
Purchasing of maintenance supplies
Funding meals for needy students
Building maintenance and repair
Funding school nurses
Abatement in bus storage space charges
- 2 -
.~
....
.
.
. '
Recommendations
Each of the above options has been examined in some detail. The
recommendations made herein were developed using the following
criteria:
value of services received to both the School District and
the City
One-time nature of support
Avoidance of district staff replacements
Minimization of impact to the city's General Fund
It is recommended that the City council amend the 1986-87 budget,
as necessary, to include the following:
1) Lease of Los Amigos Park
To insure continued availability
of much-needed open space in the
$100,000
City.
(Lease payment to be financed
by loan from General Fund reserves
to be repaid from project
mitigation park in-lieu fees.)
2) Payment of district share
$
6,000
of cable character generator costs.
(Already in proposed budget.)
3) Visiting Librarian Program
20 hours per week of City
$
15,000
Librarian's visitations to
schools to provide library
- 3 -
"-
,.
.. 't
.
enrichment programs such as
book reviews. (Already in
proposed budget.)
4) Partial funding of meals for needy
students.
Subtotal
.
$ 50,000
$ 171,000
Prepared By: Lynne C. Barrette, Ass't. City Manager
(smmusd)
- 4 -